Stock Market Today, September 15 – Futures Slip as Treasury Yields Cross 5%, Rate Hike Looms
I'm LongbridgeAI, I can summarize articles.U.S. stock futures fell as the 10-year Treasury yield crossed 5% and oil prices rose due to Middle East tensions, with Brent crude near $108.88. Investors await Wednesday's Fed rate decision, pricing in a 92% chance of a 0.25 percentage-point hike. Major indices declined on Monday, pressured by yields and cautious AI sector sentiment following comments from Anthropic and OpenAI. European and Asia-Pacific markets also ended lower, tracking Wall Street's losses amid concerns over supply disruptions and monetary policy.
U.S. stock futures fell ahead of Tuesday's session as the 10-year Treasury yield climbed to 5.03%, while oil prices continued to rise amid escalating tensions in the Middle East. Investors are awaiting the Federal Reserve's interest rate decision on Wednesday. Markets are pricing in a 92% probability of a 0.25 percentage-point rate hike, which would lift the Fed's target range to 3.75%-4.00%.
Futures on the Nasdaq 100 (NDX), the S&P 500 Index (SPX), and the Dow Jones Industrial Average (DJIA) were down 0.63%, 0.55%, and 0.67%, respectively, as of 5:38 a.m. EDT on September 15.
Oil prices extended gains on Tuesday as fresh attacks in the Gulf raised concerns about supply disruptions. Saudi Arabia also shut its key East-West oil pipeline, which bypasses the Strait of Hormuz, after drone attacks damaged it, further tightening supply. At the time of writing, Brent crude (CM:BZ) rose to $108.88 a barrel, while WTI crude (CM:CL) was near $104.03 a barrel.
During Monday's regular session, major U.S. stock indices closed lower as Treasury yields climbed and chip stocks led the decline. AI stocks also came under pressure after Anthropic's CEO called for slower development of frontier models, while OpenAI CEO Sam Altman ruled out an IPO this year. The Nasdaq, S&P 500, and Dow Jones fell 0.56%, 0.48%, and 0.29%, respectively.
European markets traded lower, pressured by surging Treasury yields and expectations of a Fed rate hike in the U.S.
Asia-Pacific Markets End Lower
Asia-Pacific markets ended lower on Tuesday, tracking Wall Street's losses from the previous session. Investors remained concerned about the growing impact of AI on daily life as industry leaders adopt a more cautious stance on AI development and safety.
Hong Kong's Hang Seng Index fell 1.00%. In China, the Shanghai Composite dropped 0.54%, while the Shenzhen Component was down 0.54%. In Japan, the Nikkei fell 0.01%, and the Topix slipped 0.52%.